Institutions control more of the equity markets but financial services investors have had poor returns as investors in venture capital funds.
Over the past three decades, institutional investors have controlled an increasing share of the US equity markets, exceeding 50% from 1995, according to academics Paul Gompers and Andrew Metrick.
The importance of institutional investors – pension funds, insurance companies and funds of funds – has also been seen in private equity and venture capital (VC), but research by a trio of US academics has found that not all investor types performed equally well.
The three, Josh Lerner, at Harvard University…
